monthly payments for th

Q: 4.10) PVIFA you need to repay the loan by equal payments at the end of every 6 months Example 9: You…

A: Given, The loan amount is P50,000 Interest rate is 10% Term is 3 years

Q: You bought a stock one year ago for $51.46 per share and sold it today for $57.76 per share. It palu…

A: Total return from a stock is divided into two components. The first one is due to the dividend…

Q: An account pays continuously compounded interest. If the amount grows from $3000 to $4500 in eight…

A: The annual interest rate can be computed by using the future value function with continuous…

Q: Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: some property which has an assessed value of $240,500. If the tax rate is 65.90 mills, calculate the…

A: There are taxes to be paid on the property according the prevailing tax rate and amount of tax due…

Q: An company uses a technology which it purchased for $15 million. Operating costs are $2 million per…

A: IRR stands for internal rate of return and refers to a method that is used for analyzing the…

Q: Suppose the market risk premium is 6% and the​ risk-free interest rate is 6%. Using the data in the​…

A: Risk free rate = 6% Market risk premium = 6% Starbucks beta = 0.80 Hershey beta = 0.33 Autodesk beta…

Q: What quarterly compounded nominal interest rate is earned on payments of $215 paid at the beginning…

A: An annuity is a payment plan where a fixed recurring amount is paid in return for a lump sum amount.…

Q: Taking a country of your choice, explain the national economic system under which the country…

A: A national economic system is a collection of systems for producing, consuming, and distributing…

Q: You expect that Flex Industries (FI) will have earnings per share of $2 this year and that they will…

A: The growth rate in dividends is directly based on the investment made and return earned on the same.…

Q: money is invested at a nominal rate of interest of 8% for a period of 4 ye effective rate if it is…

A: The effective rate is the rate considering the effect of compounding on the interest rate and always…

Q: Define each term and state three characteristics for each term a- Pay-back period b- Discounted…

A: a. Pay-back period: The payback period is the length of time required to repay the cost of an…

Q: Golden Corporation have the following information from its books: Sales P1,600,000 Credit sales 90%…

A: Sales = P1,600,000 Credit sales are 90% of sales Average Collection period is 30 days Assume number…

Q: Manila Wines, Inc. is considering the purchase of a P1,500,000 machine that is expected to have…

A: The Payback Period is one of the traditional techniques of capital budgeting that does not take into…

Q: A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash…

A: The difference between the Discounted value of cash inflows and Cash outflows over a period of time…

Q: What is the IRR for this project cashflow?

A: IRR (Internal Rate of Return): It is the rate at which the NPV (net present value) of an investment…

Q: The risk-free rate on T-bills recently was 1.23%. If the real rate of interest is estimated to be…

A: Concept. Real interest rate and inflation. Nominal interest rate on financial instruments such as…

Q: Compute the expected return, variance, and standard deviation of the following assets. Show the…

A:

Q: Solace has been working for a year as an analyst for an investment company that specializes in…

A: Given in this question, The following are the details , State of the Economy Probability…

Q: A series of 12 annual payments of $7500 is equivalent to three equal payments at the end of years 6,…

A: Compound interest is defined as an addition of an interest to the sum of interest of the deposit or…

Q: Question 7 of 10 > Every year you deposit $3,400 into an account that earns 2% interest per year.…

A: Annuity refers to the fixed periodic payments made for the specified period of time.

Q: Ms. Rahat hails from a business family. She is considering starting a supermarket with an investment…

A: The IRR is one of the methods of finding the profitability of a project. It is the rate at which the…

Q: Q5. At 5% annual interest, what is the difference in the present and future value of P100 paid at…

A: Given, Annual interest rate is 5% Payment made is P100 term is 10 years

Q: Financial ratios are useful tools of financial analysis which allows the statement user to compare…

A: Financial ratios used to create with an usage of the numerical values, which used to taken from…

Q: search and make a reflection paper on how the Government exerted efforts to help its citizens during…

A: Taxes are mandatory contributions made by government agencies from individuals or businesses,…

Q: discussion defining a skip person and to which type of transfers does the GSTT apply?, Define…

A: Taxable income is part of the total income used to calculate tax obligations for a particular tax…

Q: 2.Last month The Sweet Tooth Candy Shops had total sales, including sales tax, of $51,889. The…

A: a) Sales Revenue  Given, Sales are inclusive of Sales Tax of 7.5% So, Sales are 100% and Sales tax…

Q: business purchases 3 new press machines for $150,000 each or a total of $450,000. It borrows…

A: Total cost of assets purchased to the loan taken for assets would give the loan to value ratio.

Q: Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 3.785% for 30…

A: A mortgage is a type of loan, especially on properties, where the collateral is the property itself.…

Q: O.FDI, II. portfolio, II. portfolio, IV. FDI

A: Investment refers to an asset that is acquired for the purpose of generating income or…

Q: A newly hired Sanitary Engineer was made to evaluate the following conditions; An equipment package…

A: Concept. Equivalent annual cost is annual cost of owning and maintaining asset determined by…

Q: a hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the…

A: Here, Annual interest rate = 10% YTM = 12% monthly To Find: Part a. Macaulay duration =? Part b.…

Q: Using the same begging portion of the above problem -- A cotton buyer will be making a purchase of…

A: The cash market and future market are interrelated to each but both moves in opposite directions so…

Q: Paul plans to contribute $200 at the start of every quarter year to an investment that earns 7 25%…

A: Contribution per Quater is $200 Time period is (55-20) = 35 years  Interest rate is 7.25% Compounded…

Q: What is the payback period for the new machine

A: Payback Period: It is the period in which the initial outlay of an investment or equipment is…

Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…

A: An item of expenditure on a capital asset that brings back the asset to its working position is…

Q: Discuss Three (3) risks face by commercial bank with asymmetric information and how the above risk…

A: A commercial bank is a financial institution that takes public deposits and lends money for…

Q: You purchase a new airplane for your company for 1,800,000 pesos by putting 10% down and using…

A:

Q: Q2. Carlos and Martha wanted to ensure that they had $100,000 for their child's future plans. As…

A: Effective annual rate: Because compounding effects are taken into account, the effective annual…

Q: Styles Ms. Rahat hails from a business family. She is considering starting a supermarket with an…

A: " Hi, Thanks for the question. Since you asked multiple sub parts question, we will answer first…

Q: Compute the profitability and operating efficiency ratios for 2014 of Very Good Company Compute for…

A: Given, The financial statements of a company Required: To calculate the profitability ratios,…

Q: Which of the following statements about savers, borrowers, financial system and financial…

A: (1) Savers are the group of person who deposited their small amount of money with commercial banks…

Q: These statements are presented to you for evaluation: Statement I – When property is transferred in…

A: The total financial amount of an individual's assets and property at the time of death is referred…

Q: A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 8.6%…

A: An amortized loan is one that has planned, monthly payments that are applied to both the interest…

Q: 21.A firm considering the installation of an automatic data processing unit to handle some of its…

A: If the present value of leases is less than the cost to buy, then leasing should be preferred,…

Q: A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement…

A: A credit card is a pay later facility provided by the banks to its customers. Banks charge interest…

Q: common shareholders of BFG inc. received the following dividends (per share) in recent years: $0.10…

A:

Q: Return 19.34% 6.99% 38.99% Deviation of retums 6 prediction interval of the S&P500 is between % and…

A: When returns are normally distributed than we can use z score from table available and get…

Q: A friend who owns a perpetuity that promises to pay $2,000 at the forever, comes to you and offers…

A: The present value includes the amount that is equivalent today the future value of cash flow…

Q: Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7.15% (annual coupon…

A: A bond is a debt instrument that is used by a company to raise capital. Like loans, it has to be…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.